Nj Minimum Wage 2020 Tipped Employees, Tipped Minimum Wage Federal Rate And Rates By State Chart

The minimum wage applies to most employees in new jersey with limited exceptions including tipped employees some student workers and other exempt occupations.

What is minimum wages in california. Maximum tip credit against minimum wage. New jerseys state minimum wage rate is 1100 per hourthis is greater than the federal minimum wage of 725. Tipped minimum wage laws by state 2020 tipped employees such as waitresses and bartenders may sometimes be paid a cash wage that is lower than the prevailing minimum wage through a system known as a tip credit.

If employers opt not to take the tip credit employees must be paid the full minimum wage. In certain places employers may be able to count tips an employee receives toward the minimum wage. The minimum wage for tipped employees in new jersey is 313 per hour in 2020.

Basic combined cash tip minimum wage rate. Today the minimum wage rate for large employers in new jersey is 11 an hour with 1 increases scheduled through jan. Tipped workers must earn at least the minimum wage through a combination of tips and salary.

What is the minimum for tipped employees in nj. Definition of tipped employee by minimum tips received monthly unless otherwise specified federal. Base pay that employers are required to provide is set to increase from the current 213 to 263 on july 1 2019 313 on january 1 2020 413 on january 1 2021 and to 513 an hour by 2024.

For example in new jersey the minimum cash. Total minimum wage which a tipped employee earns must be greater than or equivalent to 1100 per hour including tips. An employer of a tipped worker must either pay the tipped employee the state minimum wage in full or the employer may choose to take a tip credit for a portion of the employees tips while paying the employee a minimum cash wage.

New jerseys minimum wage date most employers seasonal small employers fewer than 6 agricultural employers cash wage for tipped workers january 1 2019 885 885 885 213 july 1 2019 1000 no change no change 263 january 1 2020 1100 1030 1030 313 january 1 2021 1200 1110 1044 413 january 1 2022 1300 1190. 1 2024 when the rate will reach 15. Tip credit plus cash wage must equal the state minimum wage.

In the following years it will increase to 413 in 2021 and 513 in 2022. Fair labor standards act flsa 725. You are entitled to be paid the higher state minimum wage.

Under federal law and in most states employers may pay tipped employees less than the minimum wage as long as employees earn enough in tips to make up the difference. State requires employers to pay tipped employees full state minimum. Therefore employees in new jersey are entitled to the higher state minimum wage.

2020 tipped rate increases. In these jurisdictions if the direct wage an employer pays an employee and tips equals the minimum wage an employer satisfies its minimum wage obligation.